Item 10 - Fiscal Year 2023-24 Homeownership Initiatives

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Exhibit 2 • Must have at least three percent (3%) of the purchase price for a down payment from seasoned funds (at least 90 days seasoned). Three most- recent bank statements are required to verify seasoned funds. Seasoned funds cannot be from gift funds. Gift funds may contribute towards the purchase; gift funds may not exceed 3% of purchase price. • Must have a positive credit history and obtain a fixed-rate first mortgage. Co-signers and variable rate loans are not allowed. • The Housing Division has a local preference for veterans and applicants who live or work in the City of Santa Ana. • Borrowers shall occupy units as their principal place of residence for the term of the Loan and shall not rent or lease the property. For CalHome Funded Loans Only • Maximum appraised home values at time of purchase shall not exceed the most recent median sales price, by county, posted at the California Association of Realtors website at https://www.car.org/en/marketdata/data/countysalesactiyjiy • The Loan -to -Value Ratio for a Mortgage Assistance CalHome program Loan, when combined with all other indebtedness to be secured by the property, shall not exceed 100 percent of the sales price plus a maximum of up to 5 percent of the sales price to cover actual closing costs. • Loan Forgiveness is not allowed with CalHome funded loans. Use of Loan Proceeds • Will be approved based on need. A minimum mortgage -to -income ratio of 28 percent is required. Maximum debt -to -income ratios cannot exceed 40/45. o If CalHome funded: Loans of up to 40 percent of the Borrower's purchase price for the property, up to a maximum of $120,000 will be provided. • City of Santa Ana loan proceeds may be applied to down payment and closing costs associated with the purchase of a home in Santa Ana. • City of Santa Ana down payment assistance loan proceeds may not be applied to down payment and closing costs associated with the purchase of an Inclusionary home made available through the City's Housing Opportunity Ordinance. Interest Rates and Repayment • Financial assistance provided to qualified individual homeowners shall be in the form of deferred payment Loans, repayable upon the sale or transfer of the homes, when the home ceases to be owner -occupied, or upon the Loan maturity date, whichever occurs first. • Repayment of the City loan principle balance will be required at the end of the 45 year term of affordability. ■ If CalHome funded: Repayment of the City loan principle balance will be required at the end of the 30-year term of affordability.